This exercise is an extension of Exercise 2-3B. Assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner’s Equity (Capital – Drawing + Revenues – Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance.
(e) Performed services and received cash, $3,000.
(f) Paid rent for March, $1,000.
(g) Paid March telephone bill, $68.
(h) Jon Wallace withdrew cash for personal use, $800.
(i) Performed services for clients on account, $900.
(j) Paid wages to part-time employee, $500.
(k) Received cash for services performed on account in transaction (i), $500.